- The German automaker Volkswagen has announced plans to build an e-tractor manufacturing plant in Nigeria
- The launch of e-tractors is a significant step toward boosting agricultural mechanisation in Nigeria
- The initiative is part of Nigeria and Germany's ongoing efforts to strengthen their economic and industrial ties
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Volkswagen, a German carmaker, has declared its intention to establish an e-tractor production facility in Nigeria to boost agricultural mechanisation.
Following discussions at the G20 foreign ministers' meeting with Germany's minister of state, Katja Keul, Nigeria's minister of foreign affairs, Hon. Yusuf Maitama Tuggar, announced the development.
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“We welcomed Volkswagen’s plans to introduce e-tractors to Nigeria, backed by the German government, as part of efforts to enhance agricultural mechanization,” Tuggar said.
With an emphasis on economic partnerships, regional security, and cultural cooperation, the program is a component of Nigeria and Germany's continuous attempts to deepen their industrial and economic connections.
Volkswagen's e-tractors are expected to transform Nigeria's agricultural sector by increasing productivity and improving mechanisation.
Automotive industry in Nigeria
Business Insider reported that Nigeria has had difficulty luring top international manufacturers despite the existence of regional competitors in the sector since the Auto Industry Development Plan has not been implemented.
According to experts, the Nigeria Auto Industry Development Plan, which has been approved by the Federal Executive Council but has not yet been signed into law, must be fully implemented if the nation's automotive industry is to thrive.
Nigeria lost the chance to host Volkswagen's new Body Shop and Assembly Plant last year when the carmaker instead reached a deal with the Egyptian government to develop it there.
To encourage local value addition, boost vehicle manufacturing, draw in investment, and raise emission standards in the automotive industry, Egypt launched the Automotive Industry Development Programme (AIDP), which was followed by the agreement.
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Following decades of poor management and volatility, Volkswagen's return to Nigeria shows growing confidence in the nation's economy.
Volkswagen's goal is to expand its activities and presence throughout Africa by creating a new "Sub-Saharan" zone that includes all nations south of the Sahara.
The brand has had decades of success on the continent, and the newly established Volkswagen Group Africa will be in charge of the company's vision and strategic direction there.
Kenya, Rwanda, Ghana, and South Africa are currently home to Volkswagen's production and assembly plants. Since 2018, the company has been offering mobility solutions in Rwanda.
It is noteworthy that Volkswagen has already tried a similar programme in Rwanda called the GenFarm Project, which provides rural communities with e-powered mechanised farming services.
The organisation declared the opening of its multipurpose facility to test e-tractor-based contemporary farming in Africa. The plant is located in Gashora, Rwanda, some 60 kilometres from Kigali, the country's capital last year.
The project's e-tractors with interchangeable batteries increase local farmers' access to and affordability of sustainable farming.
Vehicle manufacturing company begins operations in Nigeria
Legit.ng earlier reported that the Nigerian auto industry received one more challenge as Africa’s largest electric vehicle (EV) maker, Spiro, announced plans to launch operations.
The expansion marks a critical moment in the electric mobility sector in Nigeria’s economy.
Spiro’s expansion into Africa’s largest economy will see it set up shops in about eight Nigerian cities, including Abeokuta, Ibadan, Lagos, and Abuja.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
